Sagarmala Project

Sagarmala project is a port-led development programme of Ministry of Shipping.

A Shipping ministry study has claimed that the project could lead to an annual saving of Rs 40,000 crore by optimizing logistics.

Need for such a project

Explain the importance of Sagarmala Project to the Indian Economy. What are Objectives of the project?

Currently 95% of India’s trade by value and 70 % by volume take place through maritime transport.

India is lacking the high quantity of international trade via coastal line due to the lack of infrastructure facilities and advanced coastal technologies.

The cost of shipping/evacuating goods through Indian maritime transport is quite high compared to that of China, South Korea, Japan and other developed countries. This makes Indian goods uncompetitive in the international market.

China, South Korea and Japan have effectively used their coastline for ‘port-led development’. India has to replicate their model to stay competitive.

So, a plan has to be devised to reduce logistics cost and strengthen India’s EXIM industry. Sagarmala Project is one such plan.